As a snowplow driver, there are a number of specific expenses that you can claim on your tax returns. These may include:

• Vehicle expenses: You can claim expenditures related to the operation and maintenance of your snowplow, such as gas, repairs, insurance, and depreciation.
• Equipment expenses: Any tools or equipment necessary for your snowplow operation, such as snow shovels or de-icing materials.
• Home office expenses: If you use a part of your home exclusively for your business, you can claim a portion of your home expenses like utilities, mortgage interest, property taxes, and home insurance.
• Self-Employment Taxes: As a self-employed individual, you're responsible for both the employer and employee portions of Social Security and Medicare taxes, but you can deduct the employer portion.
• Professional fees: You can deduct fees that you pay to attorneys, accountants, consultants, and other professionals for business-related services.

It's important to keep detailed and accurate records of all these expenses to ensure you maximize your deductions and stay compliant with tax laws. Consulting with a professional bookkeeper can help ensure you're claiming all possible deductions and keeping your books in order.

To better manage your seasonal income, here are a few steps you can take:

• Maintain Accurate Records: Keep track of all your receipts, expenses and invoices. You could use accounting software or hire a professional bookkeeper to streamline this process.
• Separate Personal and Business Accounts: It's crucial to separate personal and business expenses to ensure clarity while accounting.
• Create a Budget: A well-structured budget will help you understand your income streams and manage expenses, helping you cope better during off-peak seasons.
• Regular Review: Regular and systematic review of your financial records helps you monitor the financial health of your business.
• Hire a Bookkeeper: A bookkeeper can manage all your financial documents, and you will have accurate records ready for tax time.

Remember, organised accounts and invoices are critical for managing seasonal income. They allow for effective financial planning and the creation of strategies to help smooth out income fluctuations throughout the year.

As an independent snowplow contractor, you may encounter a number of accounting challenges. These can include handling irregular income flows due to seasonal variances in work, tracking and categorizing all business-related expenses for tax purposes, managing any debt incurred to purchase equipment, and setting aside adequate funds for maintenance.

You can overcome these challenges by implementing various solutions. These include:

• Using an accounting system to regularly monitor your income and expenses in real-time.
• Employing a bookkeeper or an accountant who has a deep understanding of the type of financial management needed for seasonal businesses.
• Engaging a professional tax preparer to ensure that all business-related expenses are adequately tracked and used to reduce taxable income where possible.
• Taking advantage of accounting software to manage and track any debt payments and maintenance costs effectively.

At Bench Accounting, we can help streamline your financial processes, provide valuable financial insights, and allow you to focus on what you do best - clearing snow efficiently. Contact us today to learn more about our services.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.